Going Places – Interesting Trends
Thanks to technology and the open economic policies that the countries in the world follow, the world has become smaller and keeps getting smaller, in a good way, by the day.
A lot of the developed countries today are fast occupying the tax havens in the world such as Bermuda, British Virgin Islands etc that are deemed idyllic for offshore company formation Dubai.
Apart from those mentioned above, certain small countries such as Hong Kong and Singapore too have been evolving rapidly as mid-shore jurisdictions as they too have oversized financial centers and other related facilities and infrastructure that are favorable for offshore company formation.
Certain countries in the world are even seen adopting zero tax regimes with a view to marketing themselves as destinations for the establishment of such operations by the larger economies in the world such as the United States and the United Kingdom.
In the early years, these businesses were primarily categorized into two areas based on how they operated. The first type was known as IBCs where the country or organization that set up the business would do so under an agreement with the state of a given destination whereby they agree to not undertake business with persons resident in that jurisdiction. There were a number of this type of operations in the British Virgin Islands in the early 2000s but the model was copied widely and gained popularity in all parts of the world alike. Often these destinations have adopted zero tax policies.
The second type would be the countries which operate fiscal regimes that are favorable for businesses to come from other, developed countries and carry out their operations without a hassle. See this page to know more about Sharjah free zone company formation that is designed to be the centre of business and economic activity in the region.
Outsourcing is another trend that gained popularity especially over the last two decades. Here, instead of a company going and setting up a physical operation in another country, their work is assigned to a company or an individual who would do it often for a cheaper rate. This way, the third world countries benefitted greatly with a lot of the youth getting jobs that they could do right from home. Software developing and IT related fields outsource their work to freelancers around the world and it is believed that this helps the company to get their work done for a comparatively lower rate than by employing locals. Where outsourcing is concerned, South Asian nations like India and Sri Lanka are particularly popular for having a substantial workforce that is easy to work with as they are fluent in English and well conversant in the field of IT.